Lockheed Martin Corp (NYSE:LMT) shares fell after the Pentagon slashed its order for F-35 fighter jets, according to a Bloomberg News report.
The US Air Force reduced its request for new F-35s to 24 jets in the upcoming fiscal year, down from 48 jets last year.
The Pentagon plans to allocate $3.5 billion for the Air Force’s F-35s, plus another $531 million for advance procurement of materials.
This cut is part of Defense Secretary Pete Hegseth’s plan to cut US military spending by 8% over the next five years.
The F-35 program is a significant revenue contributor for Lockheed Martin, accounting for about 30% of its revenue. It delivered 110 F-35 jets to the US and its allies in 2024.
Shares of Lockheed Martin traded down 5% at $453 in the early afternoon on Wednesday.